Changes in the 2011 Tariff Schedule for Imported Printing Equipment

On December 14, 2010, the Ministry of Finance issued the 2011 Import and Export Tariff of the People's Republic of China (hereinafter referred to as the new Tariff), which took effect on January 1, 2011. People are paying close attention to exactly what changes the new Tariff contains and what preferential policies the state will adopt. For the printing industry, there is particular concern about what preferential policies the state will adopt for the import and export of printing equipment. A careful reading of the 2011 new Tariff reveals that its main contents and changes are in the following aspects.

Focus One: Increasing Tariff Lines and Reducing Tariffs

The 2011 new Tariff contains a total of 7,977 tariff lines, 54 more than the 2010 Tariff. This makes the import and export tariff more consistent with reality and the import and export trade structure more rational.

It can also be seen from the new Tariff that the overall level of import tariffs in 2011 is 9.8%. This once again declares to the world that, in accordance with China's commitment upon joining the WTO in 2001 to reduce tariffs, after nine years of effort, China has now fully fulfilled its WTO tariff concession commitments ahead of schedule. China's overall tariff level has dropped from 15.3% at the time of WTO accession to the current 9.8%. This shows that China honors its commitments.

Focus Two: Implementing Interim Duty Rates to Adjust the Trade Structure

In response to the current impact of the post-financial crisis, in order to encourage independent innovation by enterprises, promote the development of high-tech industries and advanced manufacturing, drive industrial structural upgrading, promote energy and resource conservation and ecological environmental protection, and adapt to domestic and international supply-demand conditions and market price changes, in 2011 China implemented relatively low interim duty rates on more than 600 categories of goods. Among them, 18 types of printing equipment and parts continued to enjoy relatively low interim duty rates.

Focus Three: Changes in Import Tariffs on Printing Equipment

The above covers the macro-level situation of the new Tariff. What our printing industry is concerned about is how the 2011 tariff schedule, tariff lines, and import tariffs on imported printing equipment differ from those of 2010. Have import tariff rates been reduced? In particular, what changes have been made to the interim duty rates that are revised annually?

From the new Tariff, we can see that, compared with the 2010 import and export tariff, the import tariff lines, MFN rates, and export tax rates for printing equipment are basically unchanged. However, the interim duty rates for three types of equipment and parts have changed. Specifically:

1. There are 18 tariff codes related to our printing industry under interim duty rates. Compared with 2010, one tariff code has been added. The interim duty rate for tariff code 84439929 piezoelectric inkjet heads has been added; the MFN import tariff rate is 6%, and the interim duty rate is 3%. This is conducive to the development of inkjet printing.
2. The interim duty rate for tariff code 84423021 computer-to-plate (CTP) machines has been adjusted from zero tariff in 2010 to 3%.
3. The specification and dimensions of the equipment under tariff code 84433222, "electrostatic photographic printing equipment (laser printer) capable of being connected to a network or automatic data processing equipment," have been adjusted, with the width changed from 60 cm to 32.9 cm, relaxing import restrictions.

Objectively speaking, relatively low interim duty rates have basically been set for major printing equipment and parts. Import tariffs are not high, and the import-stage adjustment tax (17% VAT) can be deducted. However, if one wants to buy a folio-size four-color sheet-fed offset press worth US$1 million, in theory it would cost only 100×1.07=US$1.07 million (about RMB 7.06 million), but in practice the enterprise must first pay (100×1.07×1.17)=US$1.2519 million (about RMB 8.30 million) in a lump sum. The burden on enterprises is relatively heavy, and VAT deduction is slow. Therefore, many small and medium-sized printing enterprises often hold back.

Focus Four: Which Import Tariff Rate Applies to Imported Equipment?

Import tariff rates include the general rate, MFN rate, agreement rate, interim duty rate, preferential rate, etc. The principle for applying a rate is: if imported goods are subject to both an MFN rate and an interim duty rate, the interim duty rate shall apply. If imported goods are subject to an agreement rate or preferential rate and also an interim duty rate, the lower rate shall apply. In other words, whichever rate is lower, the lower rate shall apply. If exported goods are subject to both an export tax rate and an interim duty rate, the interim duty rate shall apply. It should be noted that interim duty rates are formulated once a year and are valid only for the current year.

(Source: Changjiang Logistics Network)

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362148.html